Global Markets

January 29, 2020

Jim Esposito and Ashok Varadhan

1

We are one of three market franchises with deep and

consistent global scale across both FICC and Equities

#2 in Institutional Client Franchise1

#3 in reported revenues

Exceptional and experienced talent enables:

Global and deep client relationships

Superior risk intermediation

Scalable, client-centric technology platforms

What Drives Our Success

Our ambition is to have the

preeminent Global Markets

client franchise with industry

leading returns

2

Global Markets Opportunities Arising from Secular Change

Secular Forces Impact Opportunities

Regulatory

Changes

Lower Market Liquidity

Higher Capital Consumption

Active to Passive Shift

Changing Competitive

Dynamics

Enhance Client Experience

Increase Client Financing

Activities

Expand Risk

Intermediation Advantage

Technological

Innovation

Growing Share and Returns

3

Adapting, Evolving, Improving

Historical Business Model New Business Model

Concentrated on servicing the most

complicated needs of sophisticated clients

Pair bespoke derivative intermediation

with cash and electronic capabilities

Business selection guided by measuring returns

on a per trade basis

Build holistic, long-term client relationships

by adopting a portfolio approach to generating

higher returns

Limited client access to our market leading risk

analytics and pricing tools used by our own

traders (e.g. SecDb)

Goldman Sachs Marquee

Skewed focus towards a portion of a client’s

risk intermediation wallet

Grow our financing capabilities across

FICC and Equities

4

Rank 2019E Revenues ($bn)2

JPM 1 18.3

C 2 15.4

3 14.8

MS 4 13.7

BAC 5 12.9

BARC 6 6.4

CS 7 6.2

BNPP 8 6.0

DB 9 5.9

UBS 10 5.0

22%24%

26%

28% 30%

15.0

12.3

14.4 14.8

2015 2016 2017 2018 2019

Intermediation Financing Attributed Capital

Disciplined Response to Change Drives Top 3 Ranking

Reduction in attributed capital (2019 vs. 2015) -20%

Global Markets Revenues ($bn) Competitive Landscape

Reduction in firmwide market risk RWAs1 (2019 vs. 2015) -40%

15.8

5

Action Plan

Optimize

Resource

Consumption

Deepen and

Broaden Client

Base

Increase Client

Financing

Leverage

Risk Expertise to

Provide Scalable

Liquidity

Enhance

Client

Experience

6

-$700mmIdentified expense opportunities

-$300mmReduction in expenses

excl. litigation

Reduce Operating Expenses

-$250mmFurther funding optimization

-$200mm2019 funding efficiencies

Optimize Funding

~$2bnCapital reallocated to

accretive opportunities

-40%Reduction in

firmwide market

risk RWAs

Deliver Capital Efficiencies

Progress since 2015

Our medium-term plan

Optimize Resource Consumption

-20%Reduction in

attributed

capital

7

7%

>10%

~125bps~100bps

~50bps~100bps

>11% ROTE

2019 ROE Litigation ExpenseEfficiencies

FundingOptimization

ClientInitiatives

Medium-TermROE

Path to Higher Returns

~150bpsfrom resource optimization

initiatives

Medium-Term

ROE

+50bps ROTE1

8

2

Significant Upside in Closing Client GapsGoldman Sachs Ranked #2 Globally1

Cash

Derivatives

Prime

Futures

Asset

Managers

Hedge

Funds

Banks &

PSE2 InsuranceOverall

Overall #2

Equities #3

G10 Rates

G10 FX

Emerging Markets

Securitized Products

G10 & EM Flow Credit

Commodities

FICC #2

Top 3 4-7 8+

7.6%

7.9%

8.3%8.5%

9.4%

2014 2015 2016 2017 2018

#2

#2

#2#2

#2

GS Share1

$1.2bn

gap to

#1 bank3

Deepen and Broaden Client Base

9

32%

68%

Financing Intermediation

19%

81%

2

Opportunity to grow FICC financing revenues

Financing Percent of Total RevenuesIndustry Wallet Composition1 ($bn)

8277

7076

69 65

2013 2014 2015 2016 2017 2018

Financing Wallet Market Intermediation Wallet

2018 vs.

2013

-31%

+10%2018 U.S. Peer Average12019 Goldman Sachs

Mortgage warehouse lending Repurchase agreements Secured lending

Increase Client Financing in FICC

$1.4bnRevenue gap to U.S. peer average in 20181

Intermediation Wallet

10

Systematic Wallet Growth2 ($bn)Industry Gross Balances1 ($tn)

Increase Client Financing in Equities

3.4

5.9

2009 2018

+70%3.0

8.9

2009 2018

+190%

Fundamental Systematic

1.8

3.6

2012 2018

+100%

Building a strategic platform to execute in 50 global markets

Cash or SyntheticDirect Market Access or

Algorithmic

99%+ Straight-Through-

Processing Rate

~$1bnRevenue gap with systematic clients3

11

Combining Historical Strengths with Client-Focused Technology

Systematic Credit

eAron

ResultSolutionClient Challenge

Pre-trade transparency

Execution certainty

Liquidity mismatch

Institutional Principal

Facilitation

Liquidity fragmentation

Minimal aggregation

Limited algorithms & analytics

Liquidity fragmentation

Transaction costs

#1 IG Systematic

A Market Leader in Portfolio Trading

($120bn+ executed since inception)

#1Provider of Institutional

Principal Liquidity2

(>$2tn of liquidity supplied in 2019)

Leverage Risk Expertise to Provide Scalable Liquidity

Unique OfferingCombined Goldman Sachs

Liquidity, Algorithms

& Market Access

Corporate Bonds

~75% Electronic1

Commodities

~80% Electronic1

Equities

~99.9% Electronic1

12

Enhance Client Experience

Client

Analysis, Pricing & Risk

Sales, Trading & Strats

Technology

Operations

Onboarding &

Trade Management

Execution & Trade

Processing

Before: Multiple Contacts Current: Client Aligned Future: Digital Interface

Processing teams

aligned by client

Holistic Client Coverage through the Trade Lifecycle

Pre-Trade

Trade

Post-Trade

Global Markets

Organize Automate APIs

13

What is Marquee?

• Marquee is Goldman Sachs’ digital storefront for

institutional client services

• Powered by a cross-asset infrastructure and informed by

decades of innovation, this intuitive platform unlocks the

power of Goldman Sachs to deliver access to global financial

markets and risk management capabilities, content and data

Marquee Unlocks the Power of Goldman Sachs

Enhance Client Experience

Unlock the power of Goldman Sachs.

marquee.gs.com

14

1.0 1.6 1.2 0.3

Leading Market Maker Delivering One Goldman Sachs

Investment

Banking

Asset

Management

Global

Markets

Consumer &

Wealth

Management

Acquisition

Bridge

Financing

Capital

Markets

Takeout

Financing

Derivative

HedgingMerger

Advisory

4xMultiplier

Effect

Global Markets-Enabled Product Multiplier Case Study

15

“Our GS team is so good it’s like they work for us: they’re part of our investment process”

Exceptional Talent and Client Focus

Experienced Leadership

Goldman Sachs Client

Diverse and Talented Community1

72%Trading Partners / Managing

Directors with Goldman Sachs

since 2008

48%Women campus hires in 2019,

up from 32% in 2017

18 yearsAverage experience of

Sales and Trading

Partners / Managing Directors

>90%Retention rate of top

performers

93%Analyst acceptance

rate

16

Path Forward: Keys To Success

World-Class Market Making Franchise With Exceptional Talent

Strategic Priorities

Optimize resource

consumption

Global and deep

client relationships

Superior

risk intermediation

Scalable, client-centric

technology platforms

Deepen and

broaden client

base

Increase

client financing

Leverage risk

expertise to

provide scalable

liquidity

Enhance

client experience

January 29, 2020

Jim Esposito and Ashok Varadhan

Global Markets

18

End Notes

These notes refer to the financial metrics and/or defined terms presented on:

Slide 1:

1. Source: Coalition institutional client analytics for FY2018. Institutional clients only. Analysis excludes captive and non-core products

Slide 4:

1. RWAs are risk weighted assets

2. US banks: externally reported revenues adjusted for disclosed one-off items (Tradeweb gains of ~$335mm in JPM and $355mm in C) and fully-taxable equivalent adjustments of

$2,259mm in JPM. European banks: externally reported revenues adjusted for disclosed one-off items for 9M19 and FY2019 for UBS (Tradeweb gains of $38mm in UBS, €101mm in

DB and £126mm in BARC, £90mm gain from the net impact of treasury operations and hedging counterparty risk in BARC and a change in the valuation of an investment of €(37)mm in

3Q19 and €36mm in 1Q19 in DB); DB excludes Equities revenues generated in 1H19; Goldman Sachs Global Investment Research trading revenue estimates used for 4Q19, except for

UBS; all revenue estimates have been converted to dollars for consistency, using a quarterly average of their respective conversion rates

Slide 7:

1. Return on average common shareholders’ equity (ROE) is calculated by dividing net earnings applicable to common shareholders by average monthly attributed common shareholders’

equity. Attributed tangible common shareholders’ equity is calculated as attributed common shareholders’ equity less attributed goodwill and identifiable intangible assets. Return on

average tangible common shareholders’ equity (ROTE) is calculated by dividing net earnings applicable to common shareholders by average monthly attributed tangible common

shareholders’ equity. Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed

internally. Attributed tangible common shareholders’ equity and ROTE are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies.

The table below presents a reconciliation of average attributed common shareholders’ equity to average attributed tangible common shareholders’ equity:

Average for the year ended

Unaudited, $ in millions December 31, 2019

Attributed common shareholders’ equity 40,060

Attributed goodwill and identifiable intangible assets (2,803)

Attributed tangible common shareholders’ equity 37,257

19

End Notes

These notes refer to the financial metrics and/or defined terms presented on:

Slide 8:

1. Source: Coalition institutional client analytics for FY2018. Institutional clients only. Analysis excludes captive, and non-core products. Client and product universe not always consistent

across years

2. PSE includes Pensions, Sovereigns and Endowments

3. JPM Investor Day, February 26, 2019

Slide 9:

1. Source: Coalition competitor analytics. Industry wallet includes the Coalition index banks (BAC, BARC, BNPP, C, CS, DB, GS, HSBC, JPM, MS, SG, UBS). Analysis according to the

Coalition standard taxonomy

Slide 10:

1. Gross balances calculation based upon estimated industry AUM published by Hedge Fund Research, Inc. (HFR) multiplied by leverage estimated from the Goldman Sachs client

universe. Fundamental fund balances vary with market conditions

2. Source: Coalition institutional client analytics. Wallet includes cash execution and cash and synthetic financing wallet for leading systematic clients

3. Source: Coalition institutional client analytics, 2018. Wallet includes equities revenues for leading systematic clients

Slide 11:

1. Goldman Sachs electronic tickets as a percentage of total:

- ~75% of US credit

- ~80% of principal delta one trades in energy and metals

- ~99.9% of US cash equities

2. US over-the-counter equities trades, 10,000+ shares and $200,000+ notional. Source: FINRA, October – November 2019

Slide 15:

1. Includes sales, trading, strats and cross-divisional roles

20

Statements about the firm’s target metrics, including its target ROE, ROTE, efficiency ratio and CET1 capital ratios, and how they can be achieved, and statements about future

operating expense (including future litigation expense), amount and composition of future Assets under Supervision, planned debt issuances, growth of deposits and associated

interest expense savings, future geographic location of its employees, and the timing and profitability of its business initiatives, including its launch of new businesses or new

activities, its ability to increase its market share in incumbent businesses and its ability to achieve more durable revenues and higher returns from these initiatives, are forward-

looking statements, and it is possible that the firm’s actual results may differ, possibly materially, from the targeted results indicated in these statements.

Forward looking statements, including those about the firm’s target ROE, ROTE, efficiency ratio, and expense savings, and how they can be achieved, are based on the firm’s

current expectations regarding its business prospects and are subject to the risk that the firm may be unable to achieve its targets due to, among other things, changes in the firm’s

business mix, lower profitability of new business initiatives, increases in technology and other costs to launch and bring new business initiatives to scale, and increases in liquidity

requirements. Statements about the firm’s target ROE, ROTE and CET1 capital ratios, and how they can be achieved, are based on the firm’s current expectations regarding the

capital requirements applicable to the firm and are subject to the risk that the firm’s actual capital requirements may be higher than currently anticipated because of, among other

factors, changes in the regulatory capital requirements applicable to the firm resulting from changes in regulations or the interpretation or application of existing regulations or

changes in the nature and composition of the firm’s activities. Statements about the timing and benefits of business and expense savings initiatives, the level and composition of

more durable revenues and increases in market share are based on the firm’s current expectations regarding its ability to implement these initiatives and may change, possibly

materially, from what is currently expected. Due to the inherent uncertainty in these forward-looking statements, investors should not place undue reliance on the firm’s ability to

achieve these results.

For a discussion of some of the risks and important factors that could affect the firm’s future business, results and financial condition, see “Risk Factors” in our Annual Report on

Form 10-K for the year ended December 31, 2018. You should also read the cautionary notes on forward-looking statements in our Form 10-Q for the period ended September 30,

2019 and Earnings Results Presentation for the Full Year and Fourth Quarter 2019. For more information regarding non-GAAP financial measures such as ROTE, refer to the

footnotes in the Earnings Release and Earnings Presentation for the Full Year and Fourth Quarter 2019 and information on the calculation of non-GAAP financial measures that is

posted on the Investor Relations portion of our website: www.goldmansachs.com.

The statements in the presentation are current only as of January 29, 2020 and the firm does not undertake to update forward-looking statements to reflect the impact of

subsequent events or circumstances.

Cautionary Note on Forward-Looking Statements